Kisan Credit Card Scheme

LOK SABHA

Kisan Credit Card Scheme

227.  DR. KALANIDHI VEERASWAMY
        SHRI KRIPANATH MALLAH

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING be pleased to state:

 (a) the features of the Kisan Credit Card (KCC) Scheme ;

(b) the details of the funds sanctioned, allocated and utilized under this scheme during the last three years and the current year, State-wise including Assam and Tamil Nadu;

(c) the details of the targets set and achievements made so far, State-wise including Tamil Nadu along with its response;

(d) whether the Government is proposing to provide KCC to poor fishermen who are unable to give any collateral and if so, the details thereof; and

(e) the time by which it is likely to be done?

(SHRI PARSHOTTAM RUPALA)

(a) to (e): A Statement is placed on the Table of the House Statement referred to in reply to the Lok Sabha Starred Question No 227 put in by Dr. Kalanidhi Veeraswamy, Shri Kripanath Mallah, Hon’ble Members of Parliament for answer on 2nd August, 2022 regarding “Kisan Credit Card Scheme”

(a) to (c) : The Kisan Credit Card (KCC) scheme was introduced in 1998-99, as an innovative credit delivery mechanism which aims at adequate and timely credit support from the banking system to farmers for their cultivation and other needs as indicated below:-

• (i) To meet the short term credit requirements for cultivation of crops;
• (ii) Post-harvest expenses;
• (iii) Produce marketing loan;
• (iv) Consumption requirements of farmer household;
• (v) Working capital for maintenance of farm assets and activities allied to agriculture;
• (vi) Investment credit requirement for agriculture and allied activities.

The Banks extend the crop loans through KCC as per the guidelines issued in terms of Reserve Bank of India (RBI)’s Master Circular on Kisan Credit Card Scheme dated July 04, 2018. The KCC facility has been further extended to Animal Husbandry farmers and Fisheries for their working capital requirements vide RBI’s circular dated February 04, 2019.

The ceiling on loan under KCC is arrived at on the basis of Scale of Finance (SOF), fixed by State/District level Technical Committee. Based on local cost worked out on the basis of per acre/ per unit/ per animal /per bird etc. 10% escalation / increase of limit is factored in for every successive year (2nd – 5th year). RBI vide notification dated 07.02.2019 has raised the limit for collateral free agricultural loans from Rs. 1 lakh to Rs. 1.6 lakh. This is also applicable for loans availed by the farmers under the KCC scheme.

Ministry of Agriculture & Farmers’ Welfare, Government of India is implementing a Modified Interest Subvention Scheme (MISS) to provide short term agri and allied loans availed by farmers through KCC at concessional rate of interest to meet their working capital requirements. Under this scheme short term loans for agriculture and allied activities including animal husbandry, dairy, fisheries etc upto Rs.3.00 lakh is available to farmers at an interest rate of 7% per annum. Besides, additional 3% incentive is given to the farmers for prompt repayment of loans, thereby, reducing the effective rate of interest to 4% per annum. In case of short term loan availed for allied activities including Fisheries, Animal Husbandry and Dairying, etc., only the loan amount upto Rs. 2.00 lakh is available at the interest rate of 7% per annum with a provision of additional 3% incentive as prompt repayment incentive.

Under Atma Nirbar Bharat package announced on May 12, 2020, a target to cover 2.5 crore farmers with credit flow of about Rs.2.00 lakh crore was set. Special drive was undertaken to provide Kisan Credit Cards to eligible and willing farmers with special focus on PM KISAN beneficiaries. The Ministry of Agriculture & Farmers’ Welfare has reported that the target to cover 2.5 crore farmers was achieved in October, 2021 and as on 08.07.2022, 327.87 lakh new KCC applications have been sanctioned with a sanctioned credit limit of Rs. 3,72,537 crore as part of the drive.

 The details of loan amount outstanding in respect of KCC loan availed by farmers during the last three years and the current year, State-wise including Assam and Tamil Nadu is furnished at Annexure –I. Further, details of funds allocated and released during last three years and current year under Modified Interest Subvention Scheme (MISS), as reported by the Ministry of Agriculture and Farmers Welfare are as below:

(in Rs.Crore)